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Posts Tagged ‘Citigroup’

The Anglo-American establishmentA common theme of The Daily Bell is their critical examination of what they refer to as  “The Anglo-American” establishment.

From their Contributors page:

John Browne:

After graduating from Harvard Business School, he joined Morgan Stanley & Co as an investment banker. He has also worked with Barclays Bank and Citigroup and has served on the boards of several banks and international corporations, with a special involvement in venture capital.

You can’t get much more Anglo-American than Morgan Stanley (American), Barclays (British) and Citigroup (American).

Anthony Wile (founder):

Prior to beginning a career in publishing, Mr. Wile worked in the Canadian investment industry with Scotia McLeod (Bank of Nova Scotia), and Nesbitt Burns (Bank of Montreal).

Being from Canada, I know these two banks well. They are two of Canada’s Big Five government-enforced oligopolistic banks. The Bank of Nova Scotia is Canada’s most international bank, and the Bank of Montreal was the government of Canada’s banker before the establishment of The Bank of Canada in 1935, back when Canada was a dependent creation of British Parliament.

He continues to advise and consult to large international banks and money managers as well as to senior executives at both senior and junior mining firms.

If any of the “large international banks” he continues to advise and consult for happen to be based in the U.S. or the UK, then that’s also as Anglo-American establishment as you can get.

Previously, I wrote Strange bedfellows: The Federal Reserve and The Daily Bell, in response to Daily Bell founder Anthony Wile questioning whether the Greenbacker movement is being actively promoted by US Intel.

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The Big Five Canadian banks and their stocks: Royal Bank of Canada (RY), Toronto-Dominion (TD), Bank of Nova Scotia (BNS), Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CM), have been paying common dividends since the 1800s.

BMO, Scotiabank, TD, CIBC, and RBC haven’t missed paying dividends on common shares since 1829, 1832, 1857, 1868, and 1870, respectively.

That is, through WWI, WWII, the Great Depression, all the U.S. and international financial crises, and with and without a central bank.

As of June 30, 2010 prices on the NYSE, their annual dividends are:
RY 3.80%, TD 3.40%, BNS 3.90%, BMO 4.70%, CM 4.90%

Whereas the big five U.S. banks (JP Morgan, Bank of America, Wells Fargo, Citigroup and Goldman Sachs)  are only paying:
JPM 0.50%, BAC 0.30%, WFC 0.70%, C 0%, GS 1.00%

They are also listed on the Toronto Stock Exchange, so you can buy in Canadian dollars to hedge against a declining USD, when appropriate.

In February 2009, I wrote how the Big Five Canadian banks were on pace to dwarf the five biggest U.S. banks, with the the five biggest U.S. banks having twice the market capitalization of the five biggest Canadian banks, despite the U.S. economy being nine times the size of the Canadian economy.

As of the end of June 2010, the five biggest U.S. banks are still less than three times the market capitalization of the five biggest Canadian banks.

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How the mighty have fallen.

In 2007, Citigroup was the world’s biggest bank with a market capitalization of over $300 billion.

Yesterday, on March 5, 2009, their stock traded on the NYSE at 97 cents a share, representing a 98% drop since its height of $55.55 a share on May 18, 2007.

Bigger isn’t necessarily better. The bigger they are, the harder they fall, and Citigroup has fallen hard indeed.

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On February, 26, 2009, the New York Stock Exchange (NYSE) announced that it would be suspending its delistment rule for stocks trading below $1 per share.

http://www.usatoday.com/money/markets/2009-02-26-nyse-suspends-dollar-rule_N.htm

“The exchange has delisted nine companies so far this year for falling below one of several listing requirements. It delisted 54 last year.”

Add Citigroup (C) to the list of companies that would have otherwise been at risk of being delisted as of today, for trading below $1 per share.

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